Eureka Group executes $10.4M capital release deal

• Eureka Group executed four joint venture transactions to sell half-interests in two Cairns senior rental villages and acquire half-interests in two Townsville villages.
• The transaction releases approximately $10.4 million in capital for debt reduction and portfolio reinvestment.
• Long-term management agreements across all four villages will support ongoing operations and capital recycling.

Eureka Group Holdings (ASX:EGH) executed four joint venture transactions with a private investor syndicate to restructure its seniors rental village holdings and release approximately $10.4 million in capital.

Under the agreement, the business sold 50% of its Earlville and Smithfield villages in Cairns for $11.1 million while acquiring 50% of the Condon and Wulguru villages in Townsville for $10.35 million plus transaction costs.

"We retain a 50% interest in two high-quality Cairns villages while acquiring 50% ownership of two equally high-quality established Townsville villages that Eureka has managed for more than a decade," said Eureka Group Managing Director and CEO Simon Owen.

The group secured 10+10-year management agreements for all four communities and issued $150,000 in shares to the syndicate as consideration.

Following the announcement, the Eureka Group Holdings share price was unchanged at $0.61.

The company stated that all four established Queensland properties maintain occupancy levels above 98%.

Eureka plans to deploy the net funds released from the restructuring towards lower gearing and higher-yielding portfolio developments.